How to Hire Your First Employee: A Checklist for Singapore Startups

Introduction

Hiring your first employee is a significant step for any startup. How to Hire Your First Employee: A Checklist for Singapore Startups explains the legal steps and practical tasks you must complete so your new hire is engaged correctly and your business remains compliant.

This article gives a clear, practical checklist covering ACRA registration, CPF contributions, payroll, MOM permits (Employment Pass, S Pass, Work Permit), employment contracts, and other regulatory obligations relevant to Singapore startups.

Who this applies to

This checklist applies to:

New Singapore-registered companies (via ACRA BizFile+) preparing to employ staff.
Founders hiring their first local or foreign employee.
Employers seeking to comply with CPF Act, Employment Act, Employment of Foreign Manpower Act and related legislation.

Key rules and requirements in Singapore

Before offering employment, you must understand core statutory obligations. These apply whether you hire a Singapore citizen, Permanent Resident or foreign worker.

Company registration: Your company must be registered with ACRA and in good standing on the BizFile+ portal.
Employment contracts: The Employment Act requires a written contract for most employees. Ensure it covers duties, hours, salary, leave and termination notice.
CPF contributions: For citizens and PRs, employers must register for CPF and make employer and employee contributions under the CPF Act.
Income tax reporting: Payroll must be processed in line with IRAS guidance (myTax Portal) and employers must issue IR8A/Appendix 8A where applicable.
Work passes and quotas: For foreign hires, check eligibility and apply via MOM for Employment Pass, S Pass or Work Permit under the Employment of Foreign Manpower Act and Manpower Act requirements.
Workplace protection: Comply with the Work Injury Compensation Act (WICA) and Workplace Safety and Health Act for workplace safety and injury reporting.
Employer obligations: Be aware of SDL (Skills Development Levy), insurance requirements, and benefits such as sick leave, annual leave and maternity/paternity entitlements under the Employment Act.
Personal data: Collect and handle employee data in accordance with PDPA and POHA where applicable.

Step-by-step process

Use the following step-by-step checklist to guide your hiring process. Keep documentation for audits and future reference.

1. Define the role and budget

Decide the job scope, salary band (in SGD), probation period and benefits. Consider CPF, SDL and employer CPF rates when calculating total employment costs.

2. Check eligibility and work pass requirements

For Singapore citizens and PRs, no work pass is needed. For foreigners, determine whether the role requires an Employment Pass, S Pass or Work Permit and verify eligibility criteria on the MOM website.

3. Register or confirm ACRA and IRAS details

Ensure your company profile on ACRA BizFile+ is current. Set up corporate tax records on IRAS myTax Portal and prepare to issue IR8A forms when required.

4. Recruit and perform checks

Conduct interviews and reference checks.
For foreign candidates, verify passport, visa history and qualifications.
Perform background checks in line with PDPA and obtain consent for any checks you run.

5. Prepare the employment contract and company policies

Draft a written contract that complies with the Employment Act. Include job title, duties, hours, salary, CPF contribution arrangements, notice period, confidentiality clauses (PDPA considerations) and any probation terms.

6. Apply for work pass (if required)

Submit applications through MOM’s portals for Employment Pass, S Pass or Work Permit. Provide accurate supporting documents and allow sufficient processing time. Keep a copy of the in-principle approval or pass for your records.

7. Set up payroll and CPF contributions

Register for CPF via CPF Board e-Services and set up a payroll system that calculates employer CPF, employee CPF, SDL and tax deductions.
File and pay contributions and levies on time to avoid penalties.

8. Insure and plan workplace safety

Arrange WICA coverage where applicable and ensure workplace policies comply with the Workplace Safety and Health Act. Provide training and safe systems of work.

9. Onboard the employee

Issue the signed contract, provide an employment handbook or policies and complete statutory forms.
Collect authorised bank account details for salary payment and confirm IRAS tax forms if necessary.

Common mistakes to avoid

Not registering CPF or underpaying employer CPF , this attracts penalties under the CPF Act.
Using an incomplete or non-compliant employment contract that conflicts with the Employment Act.
Hiring a foreign worker without the proper MOM pass or exceeding quota limits under the Manpower Act.
Failing to account for SDL, WICA or workplace safety obligations.
Poor record-keeping for payroll, CPF, and IRAS filings.
Collecting personal data without PDPA-compliant consent and retention policies.

Practical examples

1. Local graduate hire (Singapore citizen)

ACRA-registered startup offers SGD 3,200/month. Employer registers employee with CPF, starts payroll, issues a written contract per the Employment Act, and makes monthly CPF contributions and SDL where applicable.

2. Regional hire (Employment Pass)

Startup wishes to hire a mid-level manager from overseas. The company checks Employment Pass eligibility, applies through MOM, waits for in-principle approval then issues a contract. IRAS tax residency rules and CPF exemptions for non-residents must be considered.

3. Blue-collar or foreign worker (Work Permit)

For certain sectors, employers must meet quota and levy rules, provide proper accommodation, and comply with the Employment of Foreign Manpower Act. Ensure WSH and WICA coverage is in place.

How an experienced consultant can help

An experienced immigration and employment consultant can help you interpret MOM, IRAS and CPF requirements, complete work-pass applications, draft compliant employment contracts, and set up payroll and reporting processes.

Little Big Employment Agency provides advisory support, application assistance and compliance reviews to reduce delays and regulatory risk. For many startups, professional support reduces mistakes and lets founders focus on growth rather than administrative compliance.

Frequently Asked Questions

Q: Do I need to register my startup with ACRA before hiring?

A: Yes. Your company should be registered on ACRA BizFile+ before taking on employees. Employers must be identifiable for CPF, tax and MOM reporting.

Q: When do I have to start CPF contributions?

A: CPF contributions are due from the first month of employment for Singapore citizens and PRs. Register on CPF Board e-Services and make timely monthly contributions in line with CPF Act rates.

Q: How long does an Employment Pass application take?

A: Processing times vary. Many Employment Pass applications receive an outcome within a few weeks, but complex cases may take longer. Apply early and provide accurate documentation to avoid delays.

Q: Can I hire a foreign intern without a work pass?

A: In most cases, foreign interns need appropriate passes or permits. Check MOM rules for short-term attachments and whether a Training Employment Pass or work pass exemption applies.

Key takeaways

Register your business with ACRA before hiring and keep corporate records up to date on BizFile+.
Use a compliant written employment contract and follow the Employment Act.
Calculate total employment cost including employer CPF, SDL and levies.
Check and apply for the correct MOM work pass (Employment Pass, S Pass, Work Permit) for foreign hires.
Ensure payroll, CPF and IRAS filings are accurate and timely; poor record-keeping carries penalties.
Comply with WICA, WSH and PDPA obligations from day one.

Requirements may change, so always check the latest guidance from MOM, or consult a professional adviser.

If you would like to find out more about how Little Big Employment Agency can assist with your employment and immigration requirements, please get in touch with the team at [email protected].

Yours sincerely,
The editorial team at Little Big Employment Agency

Disclaimer: This does not constitute legal advice. If you require legal advice, please contact a lawyer.